Billion turnovers and 0.5% profit: how "Apteka 9-1-1" uses business fragmentation schemes

Billion turnovers and 0.5% profit: how "Apteka 9-1-1" uses business fragmentation schemes

«Apteka 9-1-1»: billions in turnover, “Terofun”, criminal cases, and suspicions of schemes

During the war, the Ukrainian pharmaceutical market has turned into one of the most profitable sectors of the economy with a turnover of over 150 billion UAH per year. One of the main players is the «Apteka 9-1-1» chain, owned by the Daniyelyan family from Kharkiv. According to the results of 2025, the chain took third place in the market with a turnover of 27.9 billion UAH. But along with the company’s growth, a trail of scandals has been dragging for years—from trading drugs containing pseudoephedrine to suspicions of tax evasion and collusion in the drug market, as reported by Kommentari.

Today, «Apteka 9-1-1» is about 1800 pharmacies and one of the most aggressive expansion models in the pharmaceutical market. In 2018, the chain had about 300 pharmacies, and just a year later—almost 700. One of the sources of rapid growth is the story of the drug «Terofun», which contains pseudoephedrine—a component for methamphetamine production. As early as 2012, Ukrainian media reported that Indian businessman Jain Pradeep Kumar allegedly organized the supply of «Terofun» to Ukraine, after which the drug could be sold through the «Apteka 9-1-1» chain without prescriptions and at prices several times higher than the official ones.

In the materials of the 2011 criminal case, PF «Gamma-55» was mentioned—a structure through which the «9-1-1» chain was being created. The documents stated that the importer of the drug was LLC «Ananta», and «Gamma-55» sold «Terofun» through its pharmacies without prescriptions and cash receipts. At that time, the SSU recorded massive exports of the drug to Russia, and Kharkiv region effectively became the center of pseudoephedrine trade.

Currently, the chain operates through dozens of legal entities. According to industry media—68 companies and over 1800 pharmacies. The public organization «Non-Stop Ukraine» reports signs of artificial business fragmentation to minimize taxes. Formally, these are different companies and sole proprietors; in fact, it is a single chain with centralized management, a common brand, and infrastructure. This model allows distributing turnover among legal entities and reducing the tax burden.

Against the backdrop of a turnover of almost 28 billion UAH, the chain’s net profit for 2025 was only 147.8 million UAH. Profitability—about 0.5%. For one of the largest market players, this looks anomalously low.

Meanwhile, the Pechersk District Prosecutor’s Office is investigating criminal proceeding No. 12025100120000127 regarding the possible withdrawal of funds through the Polish company «SKOL TRADE SP. Z O.O.» and the Finnish «KVIK VENT OU». The investigation believes that pharmaceutical companies paid billions of hryvnias for fictitious royalties and «intellectual property». Over 2 billion UAH passed through the accounts of the Polish entity with the company’s official income of only 1.7 million UAH. Potential budget losses are estimated at more than 361 million UAH in taxes. Companies related to «Apteka 9-1-1» are mentioned in the proceeding materials.

The chain also has issues with the Antimonopoly Committee. The AMCU is investigating the activities of «9-1-1» structures due to the «Apteka Wholesale Prices» advertising and claims of «lowest prices», which could mislead buyers. In addition, the chain is involved in a case against five of the country’s largest pharmacy operators, suspected of creating an artificial shortage of certain drugs and possible market collusion.

The story of «Apteka 9-1-1» has long gone beyond ordinary pharmacy business. Behind the facade of the country’s largest chain—old stories with «Terofun», dozens of legal entities, criminal proceedings, suspicions of money withdrawal, AMCU claims, and billion-turnovers with minimal official profit. And the more documents surface, the more the Ukrainian pharmaceutical market begins to resemble a system where drugs have become a tool for super-profits rather than part of healthcare.